Buying your first home is an exciting milestone, but getting approved for a mortgage can be challenging, especially if you have less-than-perfect credit or limited funds for a down payment. The easiest home loans to qualify for are government-backed mortgages like FHA VA and USDA loans. These programs are more accessible to homebuyers with weaker credit profiles and allow smaller down payments.
FHA Loans
FHA loans are a popular option for first-time homebuyers since they require lower credit scores and down payments than conventional mortgages. FHA loans are insured by the Federal Housing Administration so lenders can offer more flexible borrowing terms.
Minimum Credit Score: 500 with 10% down, 580 with 3.5% down
Down Payment: 3.5%
Key Benefits:
- Low down payment requirement
- Available with lower credit scores
- Ideal for first-time buyers
To qualify for the 3.5% down payment, you’ll need a minimum credit score of 580. If your score is between 500 and 579, you can still get approved but will need to put down at least 10%. FHA loans have higher upfront mortgage insurance premiums than conventional loans, but overall monthly payments are very affordable.
VA Loans
VA loans help active duty military, veterans and surviving spouses finance home purchases with no down payment. Since the Department of Veterans Affairs guarantees these mortgages, you can qualify with lower credit requirements.
Minimum Credit Score: 620
Down Payment: 0%
Key Benefits:
- Zero down payment option
- No monthly mortgage insurance
- More lenient debt-to-income ratio allowed
VA loans are an excellent deal for eligible borrowers thanks to the 100% financing and lack of private mortgage insurance. Lenders also look at your entire financial picture when approving VA loans, not just your credit score and debt-to-income ratio.
USDA Loans
USDA loans help low-to-moderate income buyers in suburban and rural areas purchase homes with no down payment. You don’t need to be a farmer or agricultural worker to qualify. As long as the home is located within an eligible rural area, you can apply.
Minimum Credit Score: 640
Down Payment: 0%
Key Benefits:
- 100% financing available
- Low mortgage insurance
- Flexible income limits
In addition to requiring no down payment, USDA loans allow higher debt-to-income ratios than conventional mortgages. USDA loans are backed by the U.S. Department of Agriculture. There are income limits to qualify, but they’re based on the median income in your county.
Low Down Payment Conventional Loans
While government programs allow the lowest down payments, some conventional mortgages only require 3-5% down. Here are two options for low down payment conventional home loans:
HomeReady Mortgage: Requires a 3% down payment and 620 minimum credit score. Ideal for low-to-moderate income borrowers.
Home Possible Mortgage: Also has a 3% down payment but requires a higher 660 credit score. Geared for middle-income buyers.
Conventional 97 Loan: Offers 3% down with flexible credit requirements. Not available from all lenders.
Tips for Qualifying for a Mortgage
Preparing your finances can help boost your chances of getting approved for the easiest home loan to qualify for. Here are some tips:
- Pay down revolving debt balances below 30% of the limit
- Avoid applying for new credit before applying for a mortgage
- Ask lenders if you qualify for down payment or closing cost assistance
- Look into first-time homebuyer programs offered in your state
- Get pre-approved to show sellers you’re a serious buyer
While government-backed mortgages have the lowest barriers to entry, make sure you also shop around and compare offers from private lenders. Many credit unions, community banks and online lenders now offer low down payment conventional loans with surprisingly competitive rates and fees.
Talk to a Mortgage Expert
The easiest home loan to qualify for depends largely on your specific financial situation. Connecting with a trusted mortgage professional is the best way to determine your options and find the right loan program. They can guide you through the process and help match you with an affordable mortgage you’re likely to get approved for.
State Employees’ Credit Union: NMLS#430055
- Offers a no-down-payment mortgage without private mortgage insurance.
- Participates in multiple first-time buyer assistance programs.
- Very low average mortgage rates, according to the latest federal data.
- Credit union membership eligibility is limited.
- Loans only available in five states.
- Doesn’t offer government-backed mortgages.
- Offers a variety of repayment terms for fixed-rate loans.
- Does a substantial amount of business in FHA lending.
- mello smartloan product can streamline mortgage application, appraisal and title search.
- Interest rates are not available on the website.
- Cant apply for a mortgage on the lenders mobile app.
- Offers closing cost assistance.
- Wide variety of loan types, including renovation, refinance and energy-efficient FHA loans.
- Lends a high volume of government-backed loans.”
- Loans are not available in all states.
- Rates are not posted online.
- Does not have a mobile app.
- Average time to close is 21 days, which is faster than the industry standard.
- Qualified borrowers can receive up to $6,500 in down payment assistance.
- High market share of FHA loans.
- Doesn’t post rates online.
- No mobile app.
- A temporary buydown program lowers buyers’ interest rates in their first year.
- Offers low rates compared with other lenders, according to the latest federal data.
- Average origination fees are on the high side compared to other lenders, according to the latest federal data.
- Mortgage rates are not published online.
- Doesn’t originate mortgages in the state of New York.
- Reported average time to close (20-30 days) is faster than industry standard.
- Offers down payment assistance to first-time home buyers.
- The lender’s mobile app is focused on banking, not mortgages.
- Some loans and programs are restricted by area.
- Reported average time to close is 20 days, far below the industry average.
- Offers FHA energy-efficient mortgages.
- Also offers non-QM loans and ITIN loans, which have flexible qualifying guidelines.
- The lender’s website offers limited loan details.
- Considers borrowers with bad credit, foreclosure or bankruptcy.
- Accepts self-employed borrowers.
- FHA interest rates are on the low side, according to the latest federal data.
- FHA origination fees are on the high side, according to the latest federal data.
- Doesn’t post interest rates online.
- No online chat for customer service.
NOTE: The credit scores in this list represent the most recent information provided to NerdWallet; they are subject to change, and your approval will be based on a variety of factors. To see a lenders credit score minimums for other loan types, tap the “?” in the credit score column.
First Federal Bank: NMLS#408902
- Almost a quarter of all loans last year were FHA loans.
- Average mortgage rates are on the lower side, according to the latest federal data.
- Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.
- No dedicated mobile app for mortgage borrowers.
- Some loans are geographically limited.
- Accepts history of bad credit, foreclosure or bankruptcy.
- Flexible options for self-employed borrowers.
- Originated an above-average amount of FHA loans, according to the latest federal data.
- Doesn’t post mortgage rates online.
- Online chat not available for customer service.
- No construction or renovation loans.
- Offers several programs to make homeownership more accessible.
- Offers loans for manufactured homes.
- Renovation loan options are available.
- Does not publish interest rates online.
- No mortgage mobile app.
- Loans are not available in every state.
Get PreApproved for a Home Loan – 2025 Tips & Tricks
FAQ
What’s the easiest loan to get approved for?
Some of the easiest loans to get approved for if you have bad credit include payday loans, no-credit-check loans, and pawnshop loans.
Which is the easiest lender to get a mortgage with?
If your credit score is causing you problems, look at the mortgages offered by Barclays, Halifax, Masthaven Bank, Royal Bank of Scotland and Santander as all of these lenders will consider applicants with a poor credit history. If you’ve struggled to save up a deposit, 90 or 95% mortgages could help you out.
What is the minimum credit score for a home loan?
Credit score and mortgages
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
What is the lowest score you can have to get a home loan?
- Conventional Loans Minimum Credit Score: 620. …
- Jumbo Loans Minimum Credit Score: 700. …
- FHA Loans Minimum Credit Score: 500. …
- VA Loans Minimum Credit Score: 620. …
- USDA Loans Minimum Credit Score: 580.
What are the easiest mortgages to qualify for?
CNBC Select compared more than a dozen mortgage companies and compiled a list of the easiest mortgages to qualify for. (See our methodology for more information on how we choose the easiest mortgages.) 10-, 15- and 30-year fixed-term conventional loans, 30-year VA and FHA loans, custom mortgages with fixed-rate terms from 8 to 29 years.
What is the easiest loan to get approved for?
Because they’re guaranteed by the government, FHA, USDA and VA loans are typically the easiest to get approval for. While they have more flexible down payment and credit score requirements, VA loans are only available to former or current service members. And USDA loans have both income and location prerequisites.
Where can I get a home loan with a low credit score?
Based in North Carolina, Cardinal Financial is an online lender that offers home loans with low credit score requirements. The BBB gave it an A+ rating. 550 for FHA and VA loans, 580 for USDA loans. [ Return to summary ] San Diego-based Guild Mortgage has more than 200 branches across 32 states.
What do mortgage lenders consider when you apply for a loan?
One of the first things that mortgage lenders consider when you apply for a loan is your income. There is no set income amount that you need to earn each year to be able to buy a home. However, your mortgage lender does need to know that you have a steady cash flow to pay back your loan.
What is a good mortgage rate for a first-time homebuyer?
Compare mortgage rates for FHA loans and other first-time homebuyer options. Loans backed by the Federal Housing Administration require just 3.5% down, making them a popular choice among first-time home buyers. (If your credit score is under 580, you would be required to put 10% down.)
Do you need a good credit score to get a mortgage?
Qualifying for a mortgage takes a good credit rating, a proven ability to repay and some cash. The easiest home loans have lenient credit score requirements. However, the lower your credit score, the more you may need for a down payment, to compensate. Low credit scores also result in higher interest rates and fewer loan options.